BSP files last complaint versus Legacy officers

The Securities and Exchange Commission (SEC) has filed charges of fraud at the Department of Justice (DOJ) against businessman Celso De los Angeles Jr. and other officials of the controversial Legacy Consolidated Plans Inc.

In a 20-page complaint filed last Friday, the SEC accused De los Angeles, incumbent mayor of San Jose, Albay, and six others of violating several provisions of RA 8799 (Securities Regulation Code) and Corporation Code of the Philippines (CCP) for supposedly using Galaxy Realty as a business conduit of Legacy Consolidated Plans Inc. in its grand scheme to defraud investors.

SEC said the case is the “final piece of puzzle to complete the elaborate and fraudulent activities of Legacy Consolidated Plans Inc.”

They also accused De los Angeles’ wife Ma. Concepcion, son Martin Nicolo, brother Victorino, mother Purita, and Galaxy Realty officers Eva Villapando and lawyer Christine Limpin, following the complaint filed by 14 investors who shelled out some P16 million into the firm.

Investigation showed that most of contracts, official receipts and other pertinent documents issued to the investors were under the name of Legacy Consolidated Plans Inc. but the postdated checks used to allegedly secure the return of investments were drawn under the account name of respondent Galaxy Realty.

De los Angeles’ group was specifically accused of violating sections 8, 16 and 26 of RA 8799 and section 45 of CCP for selling unregistered securities and engaging in misrepresentation by assuring investors that the principal amount of their investments is guaranteed.

Section 16 of the SRC provides that no person shall offer to the public any pre-need plan without the approval of the SEC, while Section 26 prohibits anyone from employing any device or scheme to defraud.

The respondents will face imprisonment of not more than 21 years and pay fines ranging from P50,000 to P5 million.

The SEC also filed two complaints against Legacy Group and One Realty Corp. of De los Angeles last Thursday.

“The act of Legacy Card (formerly Legacy Group Inc.) in issuing postdated checks to secure the payment or return of the investments solicited by Legacy Consolidated Plans Inc. was in excess of the primary purpose for which it was incorporated. As such, the said act amounts to misrepresentation as to what the corporation can or cannot do,” the SEC said.

SEC also filed charges against One Realty, which was accused of acting as the business conduit of Legacy Consolidated Plans Inc. in its grand scheme to defraud the investors.

Roxas invites victims of fraud

Sen. Manuel Roxas II has invited victims of Legacy Consolidated Inc. to attend the Senate public hearing today to narrate how De los Angeles and his managers sweet-talked them into investing their hard-earned money in its banks and affiliate businesses that have later filed for dissolution.

Also summoned were De los Angeles, officials from the SEC, the Bangko Sentral ng Pilipinas, the Philippine Deposit Insurance Inc, and players in the pre-need industry.

“We will find out how De los Angeles and his officers were able to convince parents and retired workers to invest their monies to Legacy. What sweet words did they use that resulted in the bitter plight of these plan holders?” said Roxas, chairman of the Senate trade and commerce committee.

Roxas met with some 200 victims of Legacy last Saturday in Davao City, where he personally listened to their complaints on how De los Angeles and his managers tricked them.

One of those who attended the meeting in Davao had agreed to testify during today’s hearing. The witness was a former ranking officer of Legacy.

She will detail how De los Angeles and his minions planned scheming offers to generate money for the company, with the clear intent of misleading their investors and getting their hard-earned savings.

Roxas said the inputs he culled from the discussions would be used as guide by the technical staff of his committee when it comes up with remedial measures on how to more strictly regulate the pre-need industry; and to the legal counsels when it comes to demanding accountability from De los Angeles and the other suspects.

Legacy has sold more than 50,000 educational plans for an estimated worth of P1.4 billion. Its trust fund held by its trustee banks only has P350,000, according to De los Angeles.

Roxas has tapped a pool of lawyers to provide free legal counseling to victims of pre-need companies. Those who wish to avail the free legal assistance can text or call 0919-627-6927.

The SEC had earlier filed charges against De los Angeles and the other Legacy officers last Feb.13 for alleged involvement in a double-your-money program wherein potential investors are wooed with promises of unusually large gains.

Under the Legacy Group’s double-your-money program, investors will supposedly double their investment in three years and immediately get 10 percent of the plan’s maturity value. The balance of 90 percent will be paid in 12 equal installments through postdated checks issued by Legacy Consolidated Plans, one of three pre-need firms under the Legacy Group.

Investors said only the first three or four of the 12 checks issued by the group were funded.

De los Angeles was tagged as the mastermind behind the financial schemes that led to the collapse of the Legacy Group which comprised 13 rural banks and affiliate firms Legacy Consolidated Plans, Scholarship Plan Phils., Legacy Card Inc., One Realty Corp., Galaxy Realty and Holdings Inc., Legacy Consolidated Asset Holdings Inc., Fusion Capital Corp., Conventional Realty Corp., Shining Armour Property Inc., and Legacy Motors Inc.

Among the rural banks were Rural Bank of Parañaque, Rural Bank of San Jose (Batangas), Rural Bank of Carmen (Cebu), Pilipino Rural Bank, Philippine Countryside Rural Bank, Rural Bank of Calatagan (Batangas, now Dynamic Rural Bank), Rural Bank of DARBCI, Rural Bank of Kananga (Leyte, now First Interstate Rural Bank), Rural Bank of Bisayas (Minglanilla, Cebu, now Bank of East Asia), and San Pablo City Development Bank.

These banks reportedly offered returns of as much as 30 percent per annum on huge deposits and misused collaterals surrendered by clients. –With Christina Mendez